State of Dapps in 2019
And What’s Next for Ethereum, EOS and TRON? 🤔
I took a look on DappRadar, a website that provides information and insight about decentralized applications (Dapps). My goal was to analyze what type of Dapps are being used on Ethereum, EOS and TRON, one year after the burst of the ICO bubble.
At first I had concerns about data accuracy of Dapps because of bots used on these platforms, then I read that DappRadar recently announced its effort to exclude them from the statistics. So let’s dive in!
1- Most used Dapps on Ethereum
To this day, Ethereum is still the blockchain with the most Dapps (~1800) but the hype isn’t there anymore. Indeed, only 10% of those platforms have active daily users. As shown in the screenshot above, most popular Dapps on Ethereum are games, casino apps and decentralized exchanges such as Fork Delta and IDEX.
My Crypto Heroes, a gaming platform, is the only Dapp from the list with over 1 000 daily active users. That’s very far from the daily transactions we saw during the 2017 hype!
What About CryptoKitties?
CryptoKitties is a platform that enables users to collect and breed virtual cats on the blockchain? In 2017, this Ethereum game-based was the most used Dapp causing congestion and raising fees on the network. According to DappRadar, there are currently 304 daily active users, far from 15 000 daily active users the game had at its peak.
Dapper Labs, the company behind CryptoKitties, raised a $15M in March 2018 in effort to bring back the traction the game once had.
What is next for Ethereum?
It’s been awhile since we’ve seen a major update on the Ethereum Blockchain. There are always delays on the road map and the community is losing patience.
In its current state, Ethereum Blockchain cannot support massively popular applications, as evidenced by the time when CryptoKitties went viral. Scalability issues can only be fixed with the introduction of Ethereum 2.0.
Developpers are working on the Constantinople upgrade that includes 5 improvements proposals which will cause a hard-fork of the network. Constantinople was supposed to go live in January 2019 but it was delayed *again* to March 2019. This crucial update will ultimately lead to the changing of the current consensus algorithm (proof-of-work) towards proof-of-stake in 2020.
Developpers are also working on Sharding, another solution to the scalability problems of Ethereum. With this upgrade the network will be able to process around 1000 transactions per seconds (TPS) instead of ~15 TPS today.
Besides development, the most interesting thing happening on Ethereum right now is the introduction of Stablecoins backed by ETH such as DAI and USD Coin. My next article will be about this subject :)
As you can see, there are big challenges ahead and things need to move quickly. Hopefully, Ethereum still have a chance to succeed: it has the largest developer community in the cryptosphere to this day.
2- Most used Dapps on EOS
Like Ethereum, EOS is another blockchain-powered smart contracts for the development, hosting, and execution of Dapps. Its network went online in June 2018 after raising $4 billion dollars in year-long crowdsale. The platform has since gained enough traction to surpass Ethereum in Dapps usage.
According to DappRadar, 319 Dapps are published on EOS with 17 of them having more than 1000 daily active users, which is way more than Ethereum. Again, most Dapps are games and casino apps, there are no real-world applications yet.
What is next for EOS?
EOS took advantage of Ethereum scaling problems by launching a delegated Proof-of-Stake (DPOS) network with the ability to process thousands of transactions per second. This consensus algorithm requires EOS coin holders to vote for “21 delegates” or “Block Producer”, who are responsible for validating transactions on the blockchain.
In the cryptosphere, people are debating about the centralized aspect of EOS’s DPoS since the release of reports about reversed confirmed transactions and collusion among some delegates on the voting process.
One can argue that end-users don’t seem to care much about centralization, all they really care about is if Dapps offer good and smooth services. Unfortunately, the current state of Ethereum isn’t giving those features to its users, that’s why lots of Dapps are migrating to EOS.
According to Block.one, the tech firm behind the initial development and crowdsale of EOS, at least 260 projects are being built on the platform with real-world utility in mind. Since its inception 6 upgrades were done to improve the speed and reduce the latency on the network. Few days ago, a new scaling layer was recently announced as a solution to the rising costs of running a Dapps on the EOS network.
3- Most used Dapps on TRON
TRON’s goal, among others, is to connect social media, entertainment, gaming, commerce, and more, with a decentralized system, by creating the largest ecosystem in the crypto space. It’s an ambitious project tackling almost every sector on the internet.
TRON began as a ERC-20 token running on the Ethereum Blockchain before launching its mainnet in June 2018. Today, TRON has 150 Dapps on its platform, mainly gambling apps, with 18 of them having more than 1000 daily active users today.
What is next for TRON?
TRON’s blockchain is also a delegated Proof-of-Stake (DPOS) system that can process 2000 TPS. The consensus algorithm requires voting for “27 super representatives” (similar to the delegates of EOS), who are responsible for validating transactions on the blockchain.
TRON has been controversial since it started: Reports suggested that the code base was copied from other projects and the team misled the community by publishing false partnerships with big corporations.
You may have notice the big hype around TRON, thanks to the CEO superstar Justin Sun who has focused most of his time on marketing it on Twitter.
In June 2018, TRON bought Bittorent for $126 million and did an ICO in order to launch a new token (BTT) last February. On the marketing side, this was a big move because the crypto community see BitTorrent as the original pioneers of decentralization technology.
On the tech side though, it will be a big challenge for TRON to monetize the content-sharing platform. I’ve noticed that people like to stream content instead of downloading files.
Lately, developers are turning to TRON following the promise of no fees for running a Dapp as well as upcoming improvements on transactions per seconds. So the big question is, can TRON actually live up to the hype? Only time will tell…
In an era where content creation and apps storage are in the hands of Google, Amazon, YouTube, Facebook, etc., Ethereum, EOS and TRON want to give the ownership of the content back into the hands of users. Right now, Blockchain platforms are still in their early stages and there are no Dapps that challenge the status quo yet.
It will be interesting to see how the field of blockchain-powered smart contracts will evolve: will these platforms flourish all together or will they cannibalize themselves in the process?
I’m not 100% sure if there is still room for several types of Blockchain or if it’s a winner-takes-all market. And you, what are your thoughts about all that?